VIENNA--(BUSINESS WIRE)-- C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), one of the leading providers of oil and gas field services in Russia and Kazakhstan, reiterates its outlook for the current fiscal year following the initial assessment of the effects of the latest EU and US export restrictions for the Russian oil industry. C.A.T. oil expects revenues in the range of EUR 420 to 450 million and EBITDA in the range of EUR 113 to 121 million for 2014.
The Company assessed the effects of the sanctions on its business model, 2014 objectives and 2014-16 capital expenditure program. While the EU and the US export restrictions for certain items target specific projects pertaining to deep water and Arctic exploration and production and shale oil projects, neither C.A.T. oil nor its subsidiaries have ever been involved in any of the aforementioned projects. The Company’s focus has always been pressure pumping, sidetracking and drilling services solely at onshore conventional oil and gas reservoirs in Russia and Kazakhstan. C.A.T. oil has repeatedly stressed that it will consequently follow its proven strategy and neither change its business focus nor the nature of its operations going forward. Thus, the 2014-16 investment program of EUR 390 million is also not intended for any of the restricted activity areas but support of customers’ production from maturing conventional oil and gas reservoirs with diminishing productivity.
Manfred Kastner, CEO of C.A.T. oil, said: “We have been active in Russia for more than 20 years. Over time we have gone through different economic and political phases. We have always been flexible in our operations and committed to our customers and services. Despite the current macroeconomic uncertainties we thus also hold on to our plans now. We are confident in our forecast for this year as our operations run smoothly and according to the plan.”
C.A.T. oil’s business model resides upon modern technology and a well invested asset base with operating capacities primarily of EU and US origin. After having made the initial assessment, C.A.T. oil is – despite its awareness that export controls are subject to change and that regulators have broad discretion when interpreting export controls – confident in its business model. The planned capacity additions are not intended for deep water, Arctic or shale oil projects. Therefore, the Company believes the latest EU and US export control rules for Russian oil industry do not jeopardize its business model, 2014 operating and financial objectives and 2014-16 investment program.
Manfred Kastner further concluded: “We are of course closely following the developments and are constantly evaluating the conditions of the sanctions. At the same time, however, we are concentrating on our operations and the execution of our investment plan. We, therefore, remain focused beyond 2014 as our strategy aims at profitable growth going forward.”
Source: C.A.T. oil AG